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Banking in sentence

2429 examples of Banking in a sentence

If the goal is to restore confidence and get the banking system firing on all cylinders, this is not how to go about it.
And everyone knows that Europe’s much vaunted banking union is deeply flawed.
Its banking union may be flawed, but at least it exists, and over time those flaws can be fixed.
Investors are apparently banking on the fact that nothing significant will happen for at least another year, because Europe will be in the throes of its own elections in France, Germany, and probably Italy.
Areas that will become open to foreign participation include banking, securities, insurance, payments, and ratings services.
A tradition of conservative banking regulation and a tough-minded Governor of the Reserve Bank (India’s central bank) ensured that Indian banks did not acquire the toxic debts flowing from sub-prime loans, credit-default swaps, and over-inflated housing prices that assailed Western banks.
The US and Europe are united this time, and can effectively cut off Iran from world banking, bar Iranian leaders from traveling to the West, and stop exports to Iran of everything but food and medicine.
It is likely to take the form of an opaque global credit glut, turbocharged by the fragile mixture of too-big-to-fail global banking with a huge and largely unwatched and unregulated shadow banking sector.
The alternative theory – of a global credit glut – gained more ground with the release last week of the Financial Stability Board’s report on shadow banking.
The FSB report contains startling revelations about the scale of global shadow banking, which it defines as “credit intermediation involving entities and activities outside the regular banking system.”
The report, which was requested by G-20 leaders at their summit in Seoul last November, found that between 2002 and 2007, the shadow banking system increased by $33 trillion, more than doubling in asset size from $27 trillion to $60 trillion.
The shadow banking system is estimated at roughly 25-30% of the global financial system ($250 trillion, excluding derivatives) and at half of total global banking assets.
The shadow banking system is complex, because it comprises a mix of institutions and vehicles.
They are some of the largest counterparties with the regular banking system, and their combined credit creation and proprietary trading and hedging may account for much of the global liquidity flows that make monetary and financial stability so difficult to ensure.
The trouble is that, by 2010, the shadow banking system was about the same size as it was just before the 2007 market crash, whereas the regulated global banking system was 18% larger than in 2007.
That is why the FSB report pinpoints the shadow banking system, together with the large global banks, as sources of systemic risk.
Specifically, global credit creation by the regular and shadow banking systems is likely to be significantly larger than the sum of the credit creation currently measured by national statistics.
Third, the interaction between the shadow banking system and the global banks is highly concentrated, because the global banks act as prime brokers, particularly for derivative trades.
Indeed, the nightmare scenario haunting the world is the collapse of another shadow banking entity, causing global trade to freeze, as happened in 2008.
We urgently need to monitor and understand the role of shadow banking and the too-big-to-fail banks in creating the global credit glut.
But the more countries employ this strategy, the greater the strain on the banking sector.
The World Bank report also points out that, as a consequence of banking retrenchment, institutional investors with long-term liabilities – such as pension funds, insurers, and sovereign wealth funds – may be called upon to assume a greater role in funding long-term assets.
In the original vision of central banking, price stability was not at all an obvious purpose, since the value of money was cast in terms of specific weights of precious metals.
In the mid-nineteenth century, a new generation of central banks was established essentially to manage payments systems and stabilize fragile banking systems.
It absorbed much of the political inheritance of Germany’s Bundesbank, whose establishment after World War II reflected Allied insistence on breaking with German central banking’s past traditions, in which political subservience and close ties to the financial establishment undermined monetary stability, leading to inflation and the destruction of the currency.
The ECB was also unlike older central banks in that it was not seen as a source of support for an integrated but potentially vulnerable banking system.
In the late 1980’s and early 1990’s, there were debates about whether the ECB should be responsible for banking supervision and regulation.
The choice for European central banking is now open: should it play around with multiple political partners, or should it settle down to stable marital bliss with a well-defined mechanism for responsibility and accountability?
In 1932, the Fed was unwilling to help stabilize a collapsing banking system.
Bank runs started almost immediately and quickly engulfed the country, resulting in the Bank Holiday of 1933 – that is, in the forced closure of the entire US banking system.
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